3 replies to this topic

[zedor]

I posted (that post is now missing ??) about this item when the news was in early July that Bear Sterns would not be able to tell investors until 17/18 July how much money they have. Mark even replied -- "oh that is old news."

Well today we know why the delay. To give time to engineer this pathetic rally to get the big guys out.

This is gonna get ugly. The market is naked and without clothes.

July 18 (Bloomberg) -- Bear Stearns Cos. told investors in its two failed hedge funds that they will get little if any money back after ``unprecedented declines'' in the value of AAA rated securities used to bet on subprime mortgages.

Estimates show there is ``effectively no value left'' in the High-Grade Structured Credit Strategies Enhanced Leverage Fund and ``very little value left'' in the High-Grade Structured Credit Strategies Fund, Bear Stearns said in a two-page letter. The second fund still has ``sufficient assets'' to cover the $1.4 billion it owes Bear Stearns, according to the letter, which was obtained yesterday by Bloomberg News from a person involved in the matter.

``This is a watershed,'' said Sean Egan, managing director of Egan-Jones Ratings Co. in Haverford, Pennsylvania. ``A leading player, which has honed a reputation as a sage investor in mortgage securities, has faltered. It begs the question of how other market participants have fared.''

http://www.bloomberg...6...&refer=home

Fully short and prepared for the long haul bear market. There is no value in this market at all. All air all hype all manipulated and all kited with endless imaginary money created daily by the FED by the billions and billions.

Edited by zedor, 18 July 2007 - 04:50 AM.

[OEXCHAOS]

http://www.traders-t...?...c=72235&hl=

[VolPivots]

Cooking your books is very old news. A recent example was Fannie Mae a few years ago.... so it'll be headline news for a bit while they get everyone all beared up again, but then it'll get buried until the next "crisis" by the time which Wall Street will be trading at new ATHs across the board....again and again and again

Edited by marketneutral, 18 July 2007 - 06:38 AM.

[nimblebear]

It'd be interesting to see WHO lost money and HOW MUCH. Triple A ain't what it used to be. This financial ingeniuty has make a mockery of S&P , Moody's ratings on all debt. If what used to be Triple A, Double A etc. is no longer, even though that's how they've been rating for a long while with all these "sliced and Diced" Spread the risk tranches that will "never blow up" then the whole ratings system is a joke. Its a matter if a bunch of people decide to start running to the exits in these so called "hedge funds" etc. If everyone stays put and says well the ratings don't mean much anyway, then all will be fine. Someone is bound to not like the fact that "poof" went their money in a short period of time.